Air India cuts fares by up to 81 per cent

30 December 2008

Close on the heels of a 52-per cent reduction in base fares by private sector airline Jet Airways, national flag carrier Air India has announced fare cuts of 35 per cent in about 19 domestic sectors, and up to 81 per cent on metro routes, a senior airline official said.

The lower prices will come into effect from 30 December. The reduction will be applicable to all domestic sectors, Air India said.

Air India plans to bring in an average reduction of close to 30 per cent in base fares by the end of February 2009.

The reduction in base fares comes after five consecutive reductions in the prices of aircraft turbine fuel or jet fuel over the past four months.

There has been a sharp fall in the prices of crude oil, which has fallen to a fourth of its July highs of around $147 a barrel.

While some air carriers had, earlier this month, reduced the fuel surcharge on the ticket price by Rs200 to Rs400, they did not touch the base fare.